Keller Bren School of Environmental Science & Management University of California, Santa Barbara ESM 595F... Environmental Accounting Systems “You can’t manage what you don’t see - and w
Trang 1Environmental Accounting
Systems
Arturo A Keller
Bren School of Environmental Science & Management
University of California, Santa Barbara
ESM 595F
Trang 2Environmental Accounting Systems
“You can’t manage what you don’t see - and with today’s managerial accounting systems, managers don’t see most environmental costs”, from R Todd (Greening of Industrial Ecosystems, 1994)
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Objective of Env Account System
disposition of all inputs
❙ waste disposal
❙ reprocessing
❙ recycling
Trang 4Objective of Env Account System
❚ Processing costs involving
environmental impact
❘ air emissions
❘ water treatment
❘ solids reduction
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“Hidden” costs
not adopted
Trang 6Institutional Impediments
❙ Traditional accounting doesn’t capture engineering & accounting data needed for decision making
❙ Data collected is aggregated in “wrong”
format, losing environmental context
❙ Line managers not responsible for most environmental costs
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How to present the information?
Trang 8To Whom it May Concern
❙ Bren School students doing GPs?
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Managerial Information
❙ Joint costs
❙ expense of tracking costs on individual product line basis
❙ technical difficulties of measuring product-specific material flows and emissions
❙ negative incentive to collect detailed info
Trang 10Unprofitable products?
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Don’t Look, Don’t Tell
Trang 12Role of Mgmt Accounting Systems
problem areas
for managerial decisions
throughout the organization
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Traditional Env Accounting
Trang 14Traditional Env Accounting
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“Enlightened” Cost Accounting
Trang 16Bottom Line…
compensation system (multi-objective)